Vlog: Celebrating 5 Years!

Vlog: Celebrating 5 Years!

Join our team at three+one® in officially celebrating the firm’s 5 year anniversary! This journey started as a mere dream between Joe Rulison & Peter Forsgren 25 years ago. Today we are able to boast more than $150M in new revenue for the public & higher-ed entities our company serves, and in turn for your taxpayers & students. 

Will you be a part of this continued success in our next 5 years?

 

New rfpPrep Site Launch!

New rfpPrep Site Launch!

We are excited to share with you the launch of our new rfpPrep® website!

 

rfpPrep® is the first-ever digital RFP (request for proposal) for public sector & higher-ed financial services.

Reduce the RFP process time by 75% while evaluating financial services options for your entity using an error-free & fair bidding platform. rfpPrep® is an entirely online tool for your needs in BANKING, INVESTMENT, MERCHANT SERVICES & E-PAYMENTS.

Visit rfpPrep® by three+one® to learn how this tool can work for you.

 

There’s No One Way

There’s No One Way

There’s no one way to manage cash. Different banks, investment advisors, and financial advisors have their own approaches and perspectives in the management of short-term cash.

However, there is one essential in managing short-term cash: to manage all cash as a revenue-generating asset. You must keep in mind that cash is not linear, but rather multi-dimensional, with different purposes, both in time and value.

Cash Management

Cash is multi-dimensional, with different purposes, both in time and value.

The ability to capture the ebbs and flows of all cash is in the data. Cash patterns are similar to human behaviors since humans are the ones who are conducting the timing of transactions. The genuine need for cash is often far different than when you thinkyou need it. The patterns detected through the data will show actual needs vs. assumed ones.

The cashvest® platform by three+one® is the first of its kind in the public and higher Ed marketplace. It looks at every individual banking transaction, thus detecting the flows of cash through an entity’s financial systems, and then matches it as the cash flows through your bank’s systems. It’s through cashvest® that patterns surface, enabling unparalleled liquidity management. This level of data puts the power of managing your cash in your hands and the financial institutions that manage your cash.

The strength of liquidity analysis and data leads to a greater precision of knowing when you need cash and how to best maximize its value in the marketplace.

Yes, there are different methods to managing cash. But now there is one definitive way to identify all of your cash’s investment potential. That is cashvest® by three+one®.

Vlog: Be a Revenue Center, Not a Cost Center

Vlog: Be a Revenue Center, Not a Cost Center

Your cash has value by harnessing data & technology. To look at that data and realize the additional revenue for your taxpayers or students is more important than it’s ever been! Our VP, Garrett Macdonald discusses this topic in today’s vlog.
 
There are not a lot of opportunities to increase revenues without raising taxes or tuition. Let cashvest® be one such opportunity! Start operating your finance office like a revenue center rather than a cost center.
5 Must-Do’s to Maximize Shared Services

5 Must-Do’s to Maximize Shared Services

Across the country, local public entities find themselves in the same predicament: trying to do more with fewer resources, smaller staffs, and greater demands.

In today’s environment, these issues are virtually universal, in cities, towns, villages, and school districts within a given county—and adjacent counties.

On top of these constraints is a steady stream of unfunded federal and state mandates that public entities must implement, with ever fewer dollars to cover day-to-day overhead expenses.

It should come as no surprise that more and more entities are looking to work together to eliminate duplication of services and reduce unnecessary overhead. As a result, shared-services initiatives are gaining popularity, ranging from public works, public safety, self-insured healthcare plans, and cooperative purchasing programs.

The ability to join forces can have an immediate and beneficial financial impact. The one impediment is jurisdiction of control. Entities involved in sharing services should have a long-term perspective of outcome and address this clearly upfront—and in writing.

The need to consider or expand shared services may not be desirable, but rather an absolute necessity to survive. This is especially true for smaller entities within larger jurisdictions. In the minds of taxpayers, a proper business attitude is to be applied, rather than an emotional wrestling match over control.

Under a shared-services agreement, the concern of lost identity should not be raised; the initiative is a joint effort in providing/receiving services for the participants’ mutual benefit. In general, the initiatives should focus on saving money and/or generating revenue.

Here are 5 financial shared-service initiatives to consider: 

1. Conducting a universal banking services Request for Proposal. A banking RFP would create a large volume of buying power to use in negotiating competitive pricing on bank fees and deposit rates. A collaboration like this could include villages, towns, cities, school districts, and the county government, all at once. The end result could lead to hundreds of thousands—if not millions—of dollars in savings and or additional interest income. rfpPrep® by three+one® is the first-ever electronic banking RFP (Request for Proposal) service, entirely online and specifically designed to facilitate the bidding of banking services. Visit our rfpPrep site for more resources. 

2. County governments can be a source of purchasing the short-term paper of related entities as they come to market. As local villages, towns, and school districts issue Bond Anticipation Notes (BAN) or Tax Anticipations Notes (TAN), a county could be a bidder of such notes, as allowed by legal statutes, for investment purposes. As such, the county can be an additional bidder, helping to lead to lower rates and greater competitive pricing on cash for investment. 

3. Counties can provide additional resources and expertise through their finance offices in helping smaller local entities identify and manage their cash. It would still be expected that associated entities would control their cash, but alleviate the stress associated in identifying and investing cash. 

4. Combining technology efforts can be effective and beneficial both in financial and banking transactions, especially in the flow and protection of collections and payments. 

5. Finally, consider consolidating tax collection. In the future, all tax collections will be automated. The need to have a counter or have the control of check collection will become obsolete. Having one point of contact for tax payment and options payment can lead to major personnel and banking cost savings. 

Sharing services can be pathway to strengthening the financial well-being of all those involved. Let three+one help you in setting up and managing your shared-services initiatives.  What may seem as a major undertaking can be simplified with through our proprietary liquidity analysis and modeling capabilities.

As always, our mission is to help public entities to do more in serving their communities.

 

Budgeting Interest Income for 2020

Budgeting Interest Income for 2020

It is my expectation that average earnings on short-term cash in 2020 will range between 1.50% to 2.00%.

With short-term rates currently hovering just above 2.0% and recent indications by the Federal Reserve to lower short-term rates, one would expect lower budget interest earning projections for 2020.  However, that doesn’t need to be the case.

2020 Budget Cycle

Municipal public entity and higher-ed budgeting of interest income for 2020 fiscal year is critically important.

A majority of public and higher Ed institutions continue to keep many levels of cash on the sidelines for “just-in-case” circumstances. For them, that means leaving sizable balances in low interest-bearing accounts.

Here are three steps you can take now to preserve and increase your interest income earnings for next year:

1. Perform a liquidity analysis around all your cash. This is far different from a cash-flow analysis. A liquidity analysis not only looks at the ebbs and flows of a month’s highs and lows of cash, but also includes the float of every dollar as it relates to actual daily transactions that occur all across your entity and your financial institutions . By monitoring your liquidity, the ability to pay your bills while also investing all other cash will allow you to maximize the value of all of your dollars, not just some of them.

2. Be aware that the valueof cash in the marketplace depends on the amount of time you have on your cash. Currently, money invested for 30 days is receiving higher rates than that invested for 90 days or longer. However, this can change, so having an active dialogue with your financial providers to establish an investment strategy is important. In the past eight months, there have been a couple of times we’ve seen 12-month rates jump up; they allowed those who paid attention to lock in higher rates. For your bank or investment advisor to take advantage of such opportunities relies on your ready response, always knowing what monies can be put to work, and the necessary approval processes are in place to implement upon their specific recommendations.

3. Remember that this is also good time to keep an open dialogue with your banker(s). Proactive involvement with your bank(s) will help you strategize against any reactive rate moves the bank could make in a changing rate environment.

If you don’t where to start – or don’t have the time or resources – let the team at three+one® help. With the support of our proprietary liquidity analysis and data, we can gauge critical time horizon on all your cash. That will enable you to capture the highest marketplace value for your cash and help preserve and increase your income this year and all next year.

Though it appears that rates will be slightly lower for the next budget year, that doesn’t mean you have to lower your interest-earnings outlook. It just means you need to know what tools are out there to help you make the most of  your cash on hand.

Your 2020 budget can reflect an increase in interest earnings through a proactive management style and the liquidity data of three+one®.